What is the npv that oxygen optimization

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Reference no: EM131933528

A number of companies, including Litchfield Design and Oxygen Optimization, are considering undertaking project A, which is believed by all to have a level of risk that is equal to that of the average-risk project at Litchfield Design. Project A is a project that would require an initial investment of 5,885 dollars and then produce an expected cash flow of 12,272 dollars in 8 years. Project A has an internal rate of return of 9.622 percent. The weighted-average cost of capital for Litchfield Design is 10.48 percent and the weighted-average cost of capital for Oxygen Optimization is 11.55 percent. What is the NPV that Oxygen Optimization would compute for project A?

Reference no: EM131933528

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